130 Years Coal Importers Association VDKi

• Coal: a key component of security of supply
• Generating electricity from hard coal is cheaper than from gas
• Using reserve power plants to reduce electricity prices

The Association of Coal Importers (VDKi) is celebrating its 130th anniversary this year. The association has thus stood for reliable energy imports for 130 years. Furthermore, Germany’s hard coal-fired power plants are still a key component of security of supply. It is therefore important and crucial to ensure that the remaining plants remain technically reliable and operational until sufficient, secure replacement capacity becomes available.

For one thing is beyond doubt: particularly in times of geopolitical uncertainty, such as the war in Iran with the blockade of the Strait of Hormuz or the war in Ukraine, coal imports play a crucial role in ensuring that Germany’s energy supply remains secure, affordable and resilient. Regarding the significant rise in gas prices: coal is currently cheaper than gas, and the advantage in terms of fuel costs can be enormous. Furthermore, hard coal can be sourced internationally from a wide range of regions and transported by ship. This enables Germany to diversify its supply sources and makes it less dependent on individual pipeline routes or supply regions than is the case with gas.

Coal-fired power plants can also store large quantities of fuel. A coal storage facility at the power station site can ensure security of supply for weeks or months. Modern hard coal-fired units also achieve high levels of efficiency. They can therefore be operated economically when electricity demand is high, particularly when gas is significantly more expensive.

The coalition agreement states: “A greater supply of energy helps to stabilise and reduce electricity costs. To this end, reserve power stations should in future be used not only to prevent supply bottlenecks, but also to stabilise electricity prices”. Given the very high electricity prices in Germany – particularly when viewed on a global scale – the VDKi wonders why the Federal Government is not implementing the option, explicitly set out in the coalition agreement, of reducing electricity prices through the use of reserve power stations (around 9.3 GW of power station capacity on the market, plus a further 6.7 GW in reserve).

Furthermore, the use of hard coal in power stations saves gas. Had the hard-coal-fired power stations in the grid reserve been operating in the electricity market last winter and in recent months, storage levels could be significantly higher than they are now. Given the historically low gas storage levels, there is a risk of a supply shortage next winter.

And one more thing: in terms of their carbon footprint, hard coal-fired power plants are on a par with LNG-fired gas-fired power plants, as the VDKi points out, citing its own study, various publications and a paper by Cornell University (Robert Howarth).

The VDKi’s conclusion on the occasion of its 130th anniversary: Hard coal is a key strategic component of security of supply. Particularly in this highly uncertain geopolitical climate, hard coal is reliably available and more cost-effective than gas. The Federal Government should put into practice the option, explicitly mentioned in the coalition agreement, of reducing electricity prices by bringing reserve power stations online.

Berlin, den 17. September 2026
V.i.S.d.P: Verein der Kohlenimporteure e. V., Jürgen Osterhage, Managing Director